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Well-connected Analyst Mingchi Kuo from KGI securities is known for his often accurate predictions (timing notwithstanding) of upcoming Apple products. He’s got a detailed report out today on the new Nexus 7 that he thinks will be announced at Google I/O and could ship as early as June or July in large numbers.

Perhaps the most interesting bit is that the entry level price will remain at US$199, with Google likely to lose US$5-10 per unit sold according to the analyst. Why is keeping the same price interesting? Because this thing is getting supercharged according to Kuo:

We think the new Nexus 7 will come with the following major spec upgrades: Qualcomm APQ 8064 processor; narrow bezel LTPS 7-inch high-resolution panel (1,920×1,200); 5MP AF rear camera lens; and wireless charging. We also think it will be much lighter and thinner than the previous version.

How light and thin? He’s saying that a smaller bezel around the edges and 7.5-8.5mm thinness should put it near or below the size and weight of Apple’s iPad Mini. He expects the next Mini 2 later this year.

Kuo expects Google/Asus to move 5M units in the second half of the year and continue with the same distribution strategies (selling at the Google Play Store and at retailers simultaneously).

We are positive on Nexus 7’s reception ahead of the iPad mini 2 launch given that the specs have been upgraded but the price has not been increased. However, tablet PC competition has become much fiercer this year, so we reckon new Nexus 7 year-on-year shipments growth will be limited.

It will be interesting to see how close to the current display size the new screen is. 1920×1200 is a 16:10 screen ratio just like the current 1280×800 but enlarging it a few points would go a long way in making it more competitive with Apple’s 7.9-inch iPad Mini, and with the shrunken bezel size, Asus could keep the same handheld form factor.